4 C's of Peak Performance,” Composure, Concentration, Confidence, and

Commitment – work like a model of a 3 leg stool. The first 3 C's of Peak Performance –
Composure, Concentration, and Confidence are like the legs of the stool.
Performance Management
Performance management is a tool that helps managers monitor and evaluate employees'
work. The goal of performance management is to create an environment where people can
perform to the best of their abilities and in alignment with the organization's overall goals.
Armstrong and Baron (1998) define performance management as a “systematic process for
improving organizational performance by developing the performance of individuals and
teams.
Performance management is defined as the process of continuous communication and
feedback between a manager and employee towards the achievement of organizational
objectives.
An ongoing, continuous process of communicating and clarifying job responsibilities,
priorities, performance expectations, and development planning that optimize an individual's
performance and aligns with organizational strategic goals.
In the 1970s, the father of performance management, Dr. Aubrey Daniels, coined the phrase
“performance management” to describe the application of human behavior analysis to
optimize organizational performance.
ts origins in workplace settings, however, likely began in the 1800s, when Robert Owen had
“silent monitors” observing the performance of his cotton mill workers in Scotland. While
this helped assess individual performance, it didn't look at the performance of the cotton mill
as a whole.
Armstrong and Baron (1998) outline what they believe to be the five key aims of any
performance management programme.
1. Shared vision – all members of the programme should share the same vision and this
should align with the organisation’s objectives.
2. Expectations – it is important to outline exactly what is expected of employees, as this
gives them direction and purpose.
3. Define high performance – often employees aim to improve performance, but are not
aware of what high performance actually is and how it can be achieved. A clear explanation
can be helpful here.
4. Motivation and engagement – clear performance management objectives should act as a
motivation tool for employees and improve their levels of engagement. Employees are more
willing to work hard when they understand exactly what is asked of them and why it needs to
be done.
5. Ownership and responsibility – once individuals have been given specific targets they
feel more responsible for their work and this can produce higher quality output.
Why is performance important in the workplace?
One of the most important factors in employee performance is to achieve goals. Successful
employees meet deadlines, make sales and build the brand via positive customer interactions.
When employees do not perform effectively, consumers feel that the company is apathetic to
their needs, and will seek help elsewhere.
performance management important
1. It Provides a Look into the Future
By consistently monitoring and managing workplace performance, leaders can see potential
future problems. Like with any type of issue, early detection is key. The earlier problems are
confronted the less effect that they will likely have.
2. Helps Create Development and Training Strategies
The organization could then create training programs to change the issue into an opportunity
for improvement.
3. Provides Clarity in the Organization
It is a common problem that many employees are unsure of what exactly their role entails,
what is expected of them, and who they are to report to. Through performance management,
the company can make all of this very clear. A lack of understanding often leads to a lack of
productivity. Therefore, by providing clarity for employees, the result will often be increased
productivity and confidence.
4. Increases Employee Retention
Performance management also encourages organizations to reward and recognize their
employees. Lack of recognition is a big reason some employees leave a job and look for
another. They want to be appreciated for their hard work. In addition to the clarity, the ability
to share feedback, and the additional training when needed, rewards and recognition can play
an important role in employee retention.
5.Helps to enforce goal setting and achievement
A good performance management system helps employees to understand the goals of the
company and what they are expected to do to achieve these goals. This means they
understand how their contributions affect the overall growth of the business.
6.It offers mentoring for increasing performance
The ultimate aim of performance management is to improve performance. It will help
managers to devise ways through which they can increase performance while providing the
opportunity to talk about career prospects and direction. In all, it will help the executive
manager and/or HR manager to provide additional mentoring and training which will be
useful in developing criteria for promotions.#
Why is performance management important?
1. Performance management supplements the annual performance reviewOpens a new
window . This prepares both employees and managers about what to expect during the annual
appraisal. It keeps both the manager and the employee in the loop about ongoing changes to
the performance management process, what both can do to streamline it, and how
performance overall can be improved.

2. To employees, continuous performance management indicates that managers value them.

Employees believe that their managers are interested in their work and care about their goals
and any issues they may face in the course of their job. They also become more open to
receiving constructive feedback.
Performance Management Cycle

1. Planning
This stage entails setting employees’ goals and communicating these goals with them. While
these goals should be disclosed in the job description to attract quality candidates, they
should be communicated once again when the candidate becomes a new hire. Depending on
the performance management process in your organization, you may want to assign a
percentage to each of these goals to be able to evaluate their achievement.
2. Monitoring
In this phase, managers are required to monitor the employees performance on the goal. This
is where continuous performance management comes into the picture. With the right
performance management software, you can track your teams performance in real-time and
modify and correct course whenever required.
3. Developing
This phase includes using the data obtained during the monitoring phase to improve the
performance of employees. It may require suggesting refresher courses, providing an
assignment that helps them improve their knowledge and performance on the job, or altering
the course of employee development to enhance performance or sustain excellence.
4. Rating
Each employees performance must be rated periodically and then at the time of the
performance appraisal. Ratings are essential to identify the state of employee performance
and implement changes accordingly. Both peers and managers can provide these ratings for
360-degree feedback.
5. Rewarding
Recognizing and rewarding good performance is essential to the performance management
process, as well as an important part of employee engagementOpens a new window . You can
do this with a simple thank you, social recognition, or a full-scale employee rewards program
that regularly recognizes and rewards excellent performance in the organization.
 Principles of Performance Management
 It translates corporate goals into individual, team, department and divisional goals.
 It helps to clarify corporate goals.
 It is a continuous and evolutionary process, in which performance improves over time.
 It relies on consensus and co-operation rather than control or coercion.
 It creates a shared understanding of what is required to improve performance and how it will
be achieved.
 It encourages self-management of individual performance.
 It requires a management style that is open and honest and encourages two-way
communication between superiors and subordinates.
 It requires continuous feedback.
 Feedback loops enable the experiences and knowledge gained on the job by individuals to
modify corporate objectives.
 It measures and assesses all performance against jointly agreed goals.
 It should apply to all staff.
 It is not primarily concerned with linking performance to financial reward.


strategies for effective performance management

1. Ask for your employees’ opinion

When you ask for your employees’ opinion, you show that you care. Moreover, finding how they
would prefer to do a certain thing or what works for them, will not just increase their level of interest
in the work itself but will raise their productivity and effectiveness too. And all of this upgrades
the business performance directly.
2. Customize the training plans for employees
Remember you cannot treat all your employees alike. It is wise to understand their individual learning
styles and then design an exclusive training program accordingly. Every employee has his own
strengths, weaknesses, fears, and ideas and it would be wrong to use a ‘one-size-fits-all’ module to
train all of them. They all need a different medium and a different dose of encouragement and
motivation.
3. Encourage transparency and remember it starts with you
Transparency is an inevitable feature that is compelling in every relationship whether personal or
professional. It is important to remember if you expect transparency at work, it has to start with you.
If you misuse important information or lie about something, the first and the most important thing you
will lose is the respect of your employees at the workplace.
4. Remember to recognize and reward the exceptional
We all need a pat at the back, irrespective of our age. So remember to recognize and reward the hard
work of your employees. Choose an appropriate way to show your encouragement—a bonus, a
promotion or even if that means just to appreciate them in the public eye. When you do this, you do
not just reward one for his or her hard work but encourage others to work hard as well.
5. Remember the 7 Cs of communication
The correct way of communication is half the work done for a good leader. If you wish to have
success for your organization, avoid miscommunication, confusion, and inaccuracy. The 7 Cs of
communication-clear, correct, concrete, concise, coherent, complete and courteous goes a long way,
whether it is one-to-one communication, emails or phone calls. Remember, communicating well with
your team helps you create a good equation with them in the long run.
6. Set clear goals
When you set clear goals for your team, you give them a clear sense of direction, encouragement and
a sense of teamwork. Having goals that are unclear and ambiguous are not just frustrating for the team
but they suck in a lot of energy and breed non-productivity in business performance.
7. Evaluate employees’ knowledge and skill
One of the golden rules of the performance management system is to evaluate one’s employee’s
knowledge and skills from time to time. This helps to find out their learning needs and fill any gaps if
required. The training programs can thus be specifically designed keeping in minds the needs and
requirements of the employees of the organization.
8. Bring consistency in behavior
Consistency has always been an integral part of any success story. It does not just stop at rewarding
the right behavior once; it needs to be rewarded consistently. Similarly, unacceptable behavior has to
be consistently discouraged.
9. Remember you are ‘the example’
Before you expect anything from your team, remember you are the example they are following!
Whether it is the behavior, work ethics or maintaining the quality of work, you have to be their ideal
example. So strive to be perfect (in front of your team) if you are looking for perfection.
10. Create career opportunities for your employees
When you offer the required training to your employees so they can move ahead in their career or
create job profiles that require such trained employees, you create opportunities for your employees
and give them a chance to climb up the career ladder.
Obstacles to Effective Performance Appraisal
Effective performance appraisal can be hindered by several obstacles. Some common obstacles to effective
appraisal include:
 Lack of clear performance standards: If there are no clear and measurable performance standards, it
can be difficult for both the employee and the appraiser to evaluate job performance accurately.
 Rater bias: Appraisers may have their biases and perceptions, which can influence their evaluations. For
instance, an appraiser may have a tendency to rate employees more positively or negatively based on
personal factors like age, gender, or race.
 Poor communication: Communication is key to effective performance appraisal. If the communication
between the appraiser and the employee is inadequate, it can lead to misunderstandings and inaccurate
evaluations.
 Inadequate training: Both appraisers and employees require training to conduct effective performance
appraisals. Without adequate training, the appraiser may not have the skills to evaluate job performance
accurately, and the employee may not know how to receive and act upon feedback.
 Lack of employee involvement: Employees need to be involved in the performance appraisal process.
When employees are not involved in the process, they may not take ownership of the appraisal outcomes,
and it may not lead to meaningful performance improvements.
 Fear of retaliation: If employees fear retaliation for receiving negative feedback, they may not be open
and honest during the appraisal process. This can result in inaccurate appraisals, and the employee may
not receive the feedback they need to improve their performance.
 Inappropriate appraisal techniques: Inappropriate appraisal techniques, such as using a single source
of feedback, can result in inaccurate evaluations. Employers need to use multiple sources of feedback
and appropriate appraisal techniques to ensure that the evaluations are accurate and fair.


Performance Appraisal
A performance appraisal is a systematic and periodic process of measuring an individual’s work
performance against the established requirements of the job. It’s a subjective evaluation of the
employee’s strengths and weaknesses, relative worth to the organization, and future development
potential. Performance appraisals are also called performance evaluations, performance reviews,
development discussions, or employee appraisals.
FEATURES OR CHARACTERISTICS OF PERFORMANCE APPRAISAL
1. A Process:
Performance appraisal is not a 'one-act play'. It is rather a process that involves several acts or steps.

2. Systematic Assessment:
Performance appraisal is a systematic assessment of an employee's strengths and weaknesses in the
context of the given job.

3. Main Objective:
The main objective of it is to know how well an employee is doing for the organisation and what
needs to be improved in him.

4. Scientific Evaluation:
It is an objective, unbiased and scientific evaluation through similar measures and procedures for all
employees in a formal manner.

5. Periodic Evaluation:
Although informal appraisal tends to take place in an unscheduled manner (on a continuous) basis
with the enterprises as supervisors evaluate their subordinates' work and as subordinates appraise each
other and supervisors on a daily basis, yet the systematic (i.e. formal) appraisal of an individual
employee is likely to occur at certain intervals throughout that person's history of employment (say
quarterly, six-monthly, annually, etc.)

6. Continuous Process:
In addition to being periodic, performance usually is an ongoing process. It means that appraisals are
regularly scheduled and are not dumped on the employee on whimsical dates without relevance. The
process has not been broken in a person's history of employment. However; the periodicity of
appraisal may be changed as per the needs of the situation.

7. Employee Feedback:
The performance appraisal system provides information to employees on how well they are doing
their jobs, and this feedback is provided to them when it is relevant.
Performance Appraisal Process

Defining Objectives

The first step in the systematic appraisal system is to define the objectives of the appraisal itself.
Appraisal is used for different purposes from motivating the appraisee in controlling their behaviour.
In each case, the emphasis on different aspects of appraisal differs. For example, reward providing
appraisal, such as salary revision or promotion differs from appraisal for training and development.

Defining Appraisal Norms

Appraisal is done in the context of certain norms or standards. These may be in the form of various
traits of the appraisee or their expected work performance results. Since one of the basic long-term
objectives is to improve performance, appraisal is more performance oriented. Hence performance
norms are to be specified in the beginnings of the period for which appraisal is concerned.

Designing Appraisal Programme

In the design for appraisal programme, types of personnel to act as appraisers, appraisal methodology
and types of appraisal are all to be decided. Ideally speaking all personnel of the organization should
be covered by the appraisal system. But generally various organizations keep lower level employees
out of the purview of formal appraisal. Generally, the superior concerned appraises his subordinates.
However, the present trend in appraisal suggests the concept of 360 degree appraisal, which involves
appraisal by the appraisee himself known as self appraisal as well as appraisal by the other stake
holders who are operationally related to the performance of the appraisee. The next issue is the
methodology to be used in appraisal system. Should it be through structured forms and questionnaire
or personal interview of the appraisee or a combination of both is to be decided. Along with this the
time period and tuning of the appraisal should be decided.

Implementation

In implementing appraisal programme, the appraisal is conducted by the appraisers and they may also
conduct interview if it is provided in the appraisal system. The results of the appraisal are
communicated to HR department for follow up actions which should be oriented towards the
objectives of the appraisal.

Appraisal Feedback

Appraisal feedback is the most crucial stage in appraisal process. If they are rated high or performance
highly applauded, naturally they are happy and feel their self – esteem is high. On the other if they are
rated low they resent, cry and may even be ill-tempered. But the fact is fact. Even in such cases, their
plus points should be listed out. Their weaknesses may be put clearly through counselors and advised.

Post – Appraisal Action

Rewards, promotions, training and patting on the back follow in the post – appraisal action
Tags : Human Resources Management - Performance And Potential Appraisal
Traditional Methods of Performance Appraisal
There are many traditional methods of performance appraisal that include

the following:
1. Checklist Method

In the checklist method, the questions are based on the traits of an

employee. The manager or supervisor awards a “Yes” or “No” to every

question. It is easy, straightforward, and less time-consuming when

compared to other methods. It is not so effective because it takes extra

effort and time to comprehend why a particular response is made.

2. Critical Incidents Method

Developed by Flanagan and Burns, the Critical Incidents method of

performance appraisal evaluates the performance of employees based

on their response to critical incidents. Because this method is based on

the employee’s behavior, it is highly prone to subjective judgments.

Also, it is a highly time-consuming process, particularly when the

 organization is large and there are many teams involved.

3. Essay Method

The essay method remains one of the easiest forms of employee

evaluation. The evaluator writes an essay about the employee’s

performance during the evaluation period. Here, there is an option to

read the thoughts behind the evaluator’s assessment. It requires basic

writing competencies and is sometimes subject to judgments and

subjective opinions of the evaluator.

4. Forced Distribution Method

In this method, the employees are categorized under high, average,

and poor on the bell curve based on their performance. Those brought

under high are usually eligible for rewards, incentives, promotions, and
 bonuses, and those rated as poor should work on improving their

performance or be terminated. The scope of bias is limited, and the

method is relatively simple. While this is an advantage, there is no

room to understand why an employee is slotted under a particular

category.

5. Confidential Reports

Commonly used in government organizations, the manager or the

evaluator is expected to submit a detailed review of their subordinate in

a sealed enclosure. The feedback is kept confidential and helps the

organization makes important decisions like promotion, transfers, and

incentives. Because there is no transparency, this method is subject to

judgments and subjective opinions.

6. Straight Ranking Method

 In this method, the employees are assessed based on their peers. The

evaluators rank the employees in the order of their performance and

importance to the organization. It serves as a motivation for the

employees to perform well when compared to their counterparts.

The straight ranking method also helps the organization in human

resource planning and management.

7. Paired Comparison Method

In Paired Comparison method, the employees are evaluated in pairs

based on a single attribute. The number of times an employee ranks

better is noted and ranked accordingly. Though it is a more effective

and strategic method than the straight ranking method, it gets more

complex in large organizations.

8. Rating Scale

The Rating Scale method is one of the most commonly used

performance evaluation techniques. Here, the employees are rated

from one to ten, one being the lowest and ten being the highest.

Employee performance is assessed based on various attributes like

attendance, professionalism, skillset, etc. There are chances for

subjectivity as what good means to someone can mean average for the

other. It is relatively easy to conduct and more effective than other

ranking and comparison techniques of performance management.

9. Graphics Rating Scale

 The Graphics Rating scale is also called the Liner Scale, and here, the

appraisal process evaluates employees based on their traits and

attributes, including consistency, attendance, and so on. A five-point

rating scale is used, with “one” representing the lowest and “five”

representing the highest.

10. Field Review Method

The Field Review method aims to evaluate biases and seeks more

standardized reviews and ratings from various evaluators in the

organization. The HR personnel finally aggregates the rating and leads

a discussion with the supervisors. The involvement of HR personnel

helps reduce bias and subjective judgment, which is a challenge in

many of the traditional methods listed above.

11. Forced Choice Method

In the Forced Choice method of Performance appraisal, the evaluator

assesses the employee’s performance based on a set of positive and

negative statements. Each of them carries a weight, and the evaluator

has to choose a “True” or “False” as an answer to the statement.

Modern Methods Of Performance Appraisals

1. Management by Objectives

While traditional methods of performance evaluation focus more on

assessing the traits of an employee, the Management by Objectives or

MBO method focuses on evaluating the performance of an employee.

Here, employees and their supervisors consult with one another and

set specific goals for the employee based, and agree on a set of

metrics to evaluate them. The scope of employee involvement in the

MBO method is higher, creating room for meaningful exchanges.

Employees feel more accountable as they are part of the goal-setting

process.

2. Behaviorally-Anchored Rating Scale (BARS)

Here the employee behavior is evaluated and rated on a scale ranging

from “Outstanding” and “Excellent” to “Average” and “Unsatisfactory.”

Assume that an employee is required to submit a report within a

 week. BARS evaluation for this deliverable is based on the time of

delivery.

If the employee makes the submission beforehand, then they are rated

outstanding. If they submit on the last day, they are awarded excellent.

If they submit right at the last minute, they are awarded a good, and so

on. It limits the scope for bias, and the method is easy to interpret.

3. Assessment centers

This is a more complex performance evaluation method and includes a

wide range of simulations and tests, including psychometric tests,

group discussions, interviews, and so on.

In the Assessment centers method, a team of supervisors, HR

personnel, and psychologists conduct the performance appraisal. The

employees are assessed for interpersonal skills, conflict resolution

skills, change management behavior, and so on. As it is more complex

than the other methods, it is expensive and time-consuming.

4. 360-Degree Feedback

As the name suggests, in the 360-D feedback method, employees are

evaluated based on feedback from several stakeholders like

supervisors, peers, subordinates, and themselves. The ultimate

objective here is to assess the employee’s skillsets and determine

training needs. As there is more than one evaluator involved in the

 360-Degree Feedback method, there is limited bias, and the feedback

is holistic.

5. 720-Degree Feedback

The 720-Degree Feedback method extends the scope of the 360-

Degree feedback method to seek feedback from not just the internal

stakeholders but also the customers, clients, suppliers, etc., who

function outside the organization. The evaluation is more

comprehensive and adds greater value to the assessment. The only

disadvantage is that it is hard to follow up with them to get feedback on

time.

Reducing Errors in Performance Appraisals

A number of suggestions have been advanced recently to minimize

the effects of various biases and errors on the performance
appraisal process.4 When errors are reduced, more accurate
information is available for personnel decisions and personal
development. These methods for reducing error include

 ensuring that each dimension or factor on a performance appraisal

form represents a single job activity instead of a group of job
activities.
 avoiding terms such as average, because different evaluators
define the term differently.
 ensuring that raters observe subordinates on a regular basis
throughout the evaluation period. It is even helpful if the rater takes
notes for future reference.
 keeping the number of persons evaluated by one rater to a
reasonable number. When one person must evaluate many
subordinates, it becomes difficult to discriminate. Rating fatigue
increases with the number of ratees.
 ensuring that the dimensions used are clearly stated, meaningful,
and relevant to good job performance.
 training raters so they can recognize various sources of error and
understand the rationale underlying the evaluation process.
Using mechanisms like these, better employee ratings that can
have greater meaning both for the individual employee and the
organization will result.

Problems with Performance Appraisals

A number of problems can be identified that pose a threat to the value of appraisal techniques. Most
of these problems deal with the related issues of the validity and reliability of the instruments or
techniques themselves. Validity is the extent to which an instrument actually measures what it intends
to measure, whereas reliability is the extent to which the instrument consistently yields the same
results each time it is used. Ideally, a good performance appraisal system will exhibit high levels of
both validity and reliability. If not, serious questions must be raised concerning the utility (and
possibly the legality) of the system.

It is possible to identify several common sources of error in performance appraisal systems. These
include: (1) central tendency error, (2) strictness or leniency error, (3) halo effect, (4) recency error,
and (5) personal biases.

Central Tendency Error. It has often been found that supervisors rate most of their employees
within a narrow range. Regardless of how people actually perform, the rater fails to distinguish
significant differences among group members and lumps everyone together in an “average” category.
This is called central tendency error and is shown in Exhibit 8.3. In short, the central tendency error is
the failure to recognize either very good or very poor performers.

A graph plots strictness, central tendency, and leniency as parabolic curves.

Strictness or Leniency Error. A related rating problem exists when a supervisor is overly strict or
overly lenient in evaluations In college classrooms, we hear of professors who are “tough graders” or,
conversely, “easy A’s.” Similar situations exist in the workplace, where some supervisors see most
subordinates as not measuring up to their high standards, whereas other supervisors see most
subordinates as deserving of a high rating. As with central tendency error, strictness error and
leniency error fail to distinguish adequately between good and bad performers and instead relegate
almost everyone to the same or related categories.

Halo Effect. The halo effect exists where a supervisor assigns the same rating to each factor being
evaluated for an individual. For example, an employee rated above average on quantity of
performance may also be rated above average on quality of performance, interpersonal competence,
attendance, and promotion readiness. In other words, the supervisor cannot effectively differentiate
between relatively discrete categories and instead gives a global rating.

These types of bias are based on our perceptions of others. The halo effect occurs when managers
have an overly positive view of a particular employee. This can impact the objectivity of reviews,
with managers consistently giving an employee high ratings and failing to recognize areas for
improvement.

Whether positive or negative, we also have a natural tendency to confirm our preconceived beliefs
about people in the way we interpret or recall performance, which is known as confirmatory bias.

For example, a manager may have a preconception that her male report is more assertive. This could
cause her to recall instances more easily in which her report asserted his position during a meeting.
On the other hand, she may perceive her female report to be less assertive, predisposing her to forget
when the report suggested an effective strategy or was successful in a tough negotiation.

The halo effect is often a consequence of people having a similarity bias for certain types of people.
We naturally tend to favor and trust people who are similar to us. Whether it’s people who also have a
penchant for golf or people who remind us of a younger version of ourselves, favoritism that results
from a similarity bias can give certain employees an unfair advantage over others. This can impact a
team to the point that those employees may receive more coaching, better reviews and, as a result,
more opportunities for advancement.3

Recency Error. Oftentimes evaluators focus on an employee’s most recent behavior in the evaluation
process. This is known as the recency error. That is, in an annual evaluation, a supervisor may give
undue emphasis to performance during the past months—or even weeks—and ignore performance
levels prior to this. This practice, if known to employees, leads to a situation where employees may
“float” for the initial months of the evaluation period and then overexert themselves in the last few
months or weeks prior to evaluation. This practice leads to uneven performance and contributes to the
attitude of “playing the game.”

Personal Biases. Finally, it is not uncommon to find situations in which supervisors allow their own
personal biases to influence their appraisals. Such biases include like or dislike for someone, as well
as racial and sexual biases. Personal biases can interfere with the fairness and accuracy of an
evaluation and are illegal in many situations.

Potential Appraisal
Potential appraisal is a future – oriented appraisal whose main objective is to identify and evaluate the potential
of the employees to assume higher positions and responsibilities in the organizational hierarchy. Many
organisations consider and use potential appraisal as a part of the performance appraisal processes.

Aspect Performance Appraisal Potential Appraisal

Assesses an employee’s
Definition Evaluates an employee’s current performance
future potential

Future performance and

Focus Past performance
growth potential

Identify high-potential
Purpose Determine rewards, promotions, and bonuses employees for future
roles

Leadership abilities,
Evaluation criteria Achievements, skills, competencies learning agility,
adaptability

It may be conducted
Timeframe Typically conducted annually or biannually periodically or on an ad
hoc basis

Highlights
Feedback Identifies strengths and areas for improvement developmental areas for
growth
 Focuses on subjective
Measurement Objective and subjective measures assessments and
subjective judgment

Can lead to special

Impact on career development
Can influence salary increases and promotions
growth opportunities or
accelerated career paths

Subjective assessments
Reflects past performance and may not predict future
Limitations may introduce bias or
success
be less reliable

Focuses on nurturing
Often emphasizes skill improvement and performance
Development focus talent, grooming for
enhancement
future roles

Less common and often

Usage Widely used in most organizations employed for high-
potential employees

objectives of potential appraisal are to:

1. Identify the abilities of an employee in order to evaluate whether that employee is suitable for future
assignments or otherwise, and

2. Occupy higher positions in the organizational hierarchy and undertake higher responsibilities because
past performance may not be a good indicator for future and higher role.

3. Inform employees about their future roles

4. Make suitable corrections in training efforts from time to time;

5. Inform employees about they must do something for their career prospects;

6. Help organization for suitable succession plan;

7. Improve quality and quantity of performance of an employee; and

8. Give proper feedback to the employees for their potential.